IPH Limited

IPH reported revenue of $363.9 million, up 6.5%, and underlying EBITDA of $107.1 million, up 6.6%. Underlying NPATA rose 2.6% to $62.6 million, statutory net profit after tax increased 10.5%, and statutory basic EPS was up 12.1%; underlying basic EPSA increased 3.9%. Gross operating cash flow to EBITDA conversion was 101%, free cash flow was up 32% for the half, net debt fell 6.5% or $27 million to a 1.8x leverage ratio, and the interim dividend increased 11.8% to $0.19 per share, payable on 24 March. Looking ahead, management did not give formal earnings guidance, but said it expects CIPO workflow improvements to be a calendar 2026 story, sees momentum improving in ANZ, and remains focused on organic growth, cost discipline, and capital returns including a new buyback up to 12.2 million shares.

Andrew Blattman framed the quarter as evidence that IPH’s geographic diversification and scale are cushioning the weakness in ANZ. He emphasized the Canadian turnaround, Asia’s return to growth, and the company’s ability to cross-sell across its network, while repeatedly pointing to the CIPO backlog as delayed revenue rather than lost demand. His tone was confident and constructive, with optimism around Canada, Asia, AI-enabled efficiency gains, and a recovery in ANZ over time.

Brendan York highlighted the main financial drivers: revenue of $363.9 million, underlying EBITDA of $107.1 million, underlying NPATA of $62.6 million, and cash conversion of 101%. He said the interim dividend rose to $0.19 per share, representing an 81% payout ratio of cash adjusted NPAT, and noted free cash flow was up 32% for the half. On capital structure, he said net debt fell by 6.5% to a 1.8x leverage ratio, the company refinanced $210 million of syndicated debt on improved terms, and it ended the period with $111 million of undrawn facilities. He also pointed to $2.5 million of reduced corporate costs, $1.5 million of CapEx, and a higher effective tax rate of 26.2% as the new normal post-acquisition.

Analysts focused on the ANZ revenue decline, whether momentum improved in the last two months of the half, the effect of self-filed/AI-generated filings, FX sensitivity, the Canada litigation pipeline, and the outlook for China-related work. Management said ANZ and Canada both improved modestly late in the half, but there was no single driver; they also said they are not abandoning U.S. work in ANZ, but are broadening business development into China and other primary markets. On AI/self-filing, they said the risk is limited because original drafting is a smaller part of IPH’s mix and the bigger opportunity is using AI to streamline prosecution, instructions, and administration. On Canada, they said the litigation pipeline looks healthy but remains variable, and on Smart & Biggar partner roll-offs they do not expect a major exodus, with a number of principals likely to stay.